The final part of this series breaks down the extensive CoinMarketcap and Naavik 2022 Blockchain Gaming Report, looking at the future of blockchain gaming.
Part 3 of this series of articles covering the CoinMarketCap and Naavik Blockchain Gaming Report analyzed how the funding and the guild landscape have changed. The final part assesses the future of blockchain gaming.
The blockchain gaming industry has progressed a great deal since inception, and showed a glimpse of its potential, particularly in driving the crypto space ahead in general. In terms of where the space is headed, the following five key areas will be crucial.
Infrastructure
The most vital infrastructure for driving mass adoption is the one closest to the players: wallets.
However, there is much room for improvement. Metamask is the wallet of choice for many, but there are several issues:
- Managing private keys is complicated and risky
- Metamask is not mobile browser-friendly
- Although there were improvements, Metamask isn’t user-friendly
Although numerous other non-custodial wallets are making progress, Naavik believes there are two interesting potential solutions on the market.
Source: CoinMarketCap and Naavik Blockchain Gaming Report
Sequence from Horizon is a non-custodial, multi-chain wallet with multi-key support and functionality for paying gas fees in the user’s token of choice. It has been in beta with Skyweaver (a game developed by Horizon) on mobile for at least a year, giving it an edge for mobile support for game developers. It comes with integrated network switches, token swaps, fiat on-ramps and NFT viewing.
Source: CoinMarketCap and Naavik Blockchain Gaming Report
Stardust, a company providing APIs to game developers, is another infrastructure solution. The company raised a $30 million Series A and is developing a core API product that focuses on allowing game developers to integrate NFTs and blockchain into their games. It is compatible with Polygon, Immutable and Solana to start. Its custodial wallet called Stardust Vault aims to obfuscate the blockchain layer for both players and developers. That would allow the wallet to seamlessly integrate with games in the background.
Distribution
Distribution is a key factor in achieving the mass adoption of blockchain games. Major game distribution platforms are beginning to onboard blockchain games. For instance, Amazon Prime Gaming offered Blankos Block Party’s first NFT on its platform. The game later also launched on the Epic Games Store, allowing players to buy assets with credit cards. Considering the Epic Games Store has 180 million users, the addition of Blankos Block Party will undoubtedly boost its number of two million registered accounts.
Furthermore, Apple released new guidelines for NFTs. Game developers can now sell NFTs in apps through the in-app purchasing system, although that will not exempt them from the 30% fee to Apple. While reactions to these guidelines have been mixed, the increased clarity from Apple — even with restrictions of in-game NFT utility — “will significantly increase the presence of NFTs and web3 in mobile gaming,” and bring mass adoption of blockchain games much closer.
Talent Migration
Talent migration toward blockchain gaming developers is underway in four major areas:
Source: CoinMarketCap and Naavik Blockchain Gaming Report
According to LinkedIn, all major game studios have expanded their team:
Source: CoinMarketCap and Naavik Blockchain Gaming Report
Even though the effect on the space will not be immediate, this is very good news for the long-term development of blockchain gaming, resulting in games that are more fun and built on the back of traditional gaming best practices.
Gaming Model
Source: CoinMarketCap and Naavik Blockchain Gaming Report
Part 2 of this series covered the decline of the unsustainable P2E model. Since 2021, the blockchain gaming model has evolved — going from a focus on “get rich quick” in P2E, to Free-2-Own (F2O).
Pioneered by Gabriel Leydon’s new company Limit Break, games are realizing that scarce NFTs as gatekeepers are not sustainable. Instead of exorbitantly high NFT prices, free NFTs lower barriers to entry and promote mass adoption, before games could potentially monetize the involvement of whales later.
Limit Break is showcasing this with its free mint release of DigiDaigaku NFTs. 2,022 were gone in a flash and have since racked up $13M in turnover on the secondary market, with a floor price of 11 ETH. F2O has a few more advantages:
- NFTs can be given away for free on mobile app stores without losing revenue.
- Free NFTs help onboard players relatively easier than crypto tokens.
- Digital asset abundance, rather than scarcity, helps mass adoption
- F2O can generate massive headlines with marketing campaigns.
Regulation
In 2022, regulatory bodies are paying more attention to blockchain gaming and crypto firms in general — for instance, SEC Chairman Gary Gensler mentioned that all crypto tokens, except Bitcoin, could likely be a security. Further, the SEC opened an investigation into Yuga Labs. While the probe has not been completed, the result could affect all of Web3 as Yuga Labs is a pioneer in the space. But given the prevalence of rug-pulls and scams, clearer regulations are clearly desired, although the impact may negatively affect many innovators in the space.
Catch up on part 1, part 2 and part 3 of this mini-series covering the 2022 CoinMarketCap and Naavik Blockchain Gaming Report.
This article contains links to third-party websites or other content for information purposes only (“Third-Party Sites”). The Third-Party Sites are not under the control of CoinMarketCap, and CoinMarketCap is not responsible for the content of any Third-Party Site, including without limitation any link contained in a Third-Party Site, or any changes or updates to a Third-Party Site. CoinMarketCap is providing these links to you only as a convenience, and the inclusion of any link does not imply endorsement, approval or recommendation by CoinMarketCap of the site or any association with its operators.
This article is intended to be used and must be used for informational purposes only. It is important to do your own research and analysis before making any material decisions related to any of the products or services described. This article is not intended as, and shall not be construed as, financial advice.
The views and opinions expressed in this article are the author’s [company’s] own and do not necessarily reflect those of CoinMarketCap.
